An investigator analyzed the leading digits from 784 checks issued by seven suspect companies. The frequencies were found to be 2, 15, 0, 73, 496, 163, 9, 22, and 5, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.025 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 2 15 17.6% 73 9.7% 5 495 7.9% 6. 163 6.7% 6. 5.8% 22 5.1% 30.1% 12.5% 4.6% Determine the null and alternative hypotheses Ho At least two leading digits have frequencies that do not conform to Benford's law. The leading digits are from a population that conforms to Benford's law. At most three leading digits have frequencies that do not conform to Benford's law. At least one leading digit has a frequency that does not conform to Benford's law.
An investigator analyzed the leading digits from 784 checks issued by seven suspect companies. The frequencies were found to be 2, 15, 0, 73, 496, 163, 9, 22, and 5, and those digits correspond to the leading digits of 1, 2, 3, 4, 5, 6, 7, 8, and 9, respectively. If the observed frequencies are substantially different from the frequencies expected with Benford's law shown below, the check amounts appear to result from fraud. Use a 0.025 significance level to test for goodness-of-fit with Benford's law. Does it appear that the checks are the result of fraud? Leading Digit Actual Frequency Benford's Law: Distribution of Leading Digits 2 15 17.6% 73 9.7% 5 495 7.9% 6. 163 6.7% 6. 5.8% 22 5.1% 30.1% 12.5% 4.6% Determine the null and alternative hypotheses Ho At least two leading digits have frequencies that do not conform to Benford's law. The leading digits are from a population that conforms to Benford's law. At most three leading digits have frequencies that do not conform to Benford's law. At least one leading digit has a frequency that does not conform to Benford's law.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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